I expected 2009 to be a relatively quiet year in Iowa politics, but was I ever wrong.

The governor’s race heated up, state revenues melted down, key bills lived and died during the legislative session, and the Iowa Supreme Court’s unanimous ruling in Varnum v Brien became one of this state’s major events of the decade.

After the jump I’ve posted links to Bleeding Heartland’s coverage of Iowa politics from January through June 2009. Any comments about the year that passed are welcome in this thread.

Although I wrote a lot of posts last year, there were many important stories I didn’t manage to cover. I recommend reading Iowa Independent’s compilation of “Iowa’s most overlooked and under reported stories of 2009,” as well as that blog’s review of “stories that will continue to impact Iowa in 2010.”

Following up on the diary I posted this morning, this post compiles links to Bleeding Heartland’s coverage of national politics from July through December 2009. Health care reform was again the number one topic. I wish there had been a happy ending.

It took me a week longer than I anticipated, but I finally finished compiling links to Bleeding Heartland’s coverage from last year. This post and part 2, coming later today, include stories on national politics, mostly relating to Congress and Barack Obama’s administration. Diaries reviewing Iowa politics in 2009 will come soon.

One thing struck me while compiling this post: on all of the House bills I covered here during 2009, Democrats Leonard Boswell, Bruce Braley and Dave Loebsack voted the same way. That was a big change from 2007 and 2008, when Blue Dog Boswell voted with Republicans and against the majority of the Democratic caucus on many key bills.

No federal policy issue inspired more posts last year than health care reform. Rereading my earlier, guardedly hopeful pieces was depressing in light of the mess the health care reform bill has become. I was never optimistic about getting a strong public health insurance option through Congress, but I thought we had a chance to pass a very good bill. If I had anticipated the magnitude of the Democratic sellout on so many aspects of reform in addition to the public option, I wouldn’t have spent so many hours writing about this issue. I can’t say I wasn’t warned (and warned), though.

Links to stories from January through June 2009 are after the jump. Any thoughts about last year’s political events are welcome in this thread.

The $3 billion “Cash for Clunkers” program officially ends today, having helped generate at least 625,000 new car sales. Representative Bruce Braley, a key advocate of the program, is holding an event this morning in Bettendorf with John McEleney, Chairman of the National Automobile Dealers Association, and Gary Thomas, President of the Iowa Automobile Dealers Association.

Meanwhile, Energy Secretary Steven Chu has announced that $300 million in stimulus money will go toward cash incentives for consumers to buy energy-efficient home appliances:

Beginning late this fall, the program authorizes rebates of $50 to $200 for purchases of high-efficiency household appliances. The money is part of the broader economic stimulus bill passed earlier this year. Program details will vary by state, and the Energy Dept. has set a deadline of Oct. 15 for states to file formal applications. The Energy Dept. expects the bulk of the $300 million to be awarded by the end of November. (Unlike the clunkers auto program, consumers won’t have to trade in their old appliances.)

“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Energy Secretary Steven Chu said in a statement announcing the plan. Only appliances covered by the Energy Star seal will qualify. In 2008, about 55% of newly produced major household appliances met those standards, which are set by the Energy Dept. and Environmental Protection Agency.

Replacing old appliances can significantly reduce a household’s energy use and utility bills, so this seems like a good use of stimulus money. However, some analysts are skeptical that the new program will be as successful as “Cash for Clunkers”:

“The cash-for-clunkers (program) had a discernible value proposition for the consumer, because he knows how much his (clunker) is worth,” says [Sam] Darkatsh, the Raymond James analyst. “With appliances, there is no trade-in. You can walk into Home Depot and get a great deal on a home appliance any time you want one. Why would it drum up sales now?” Laura Champine, an analyst with Cowen & Co., agrees. “I’m not sure if it will be as powerful as cash for clunkers because there is something compelling about that $4,500 discount,” she says. “Also, a new car is more fun than a new dishwasher. So I’m not sure if it will be as much of a driver, but any driver is welcome right now.”

Share any relevant thoughts in this thread.

President Barack Obama signed a bill today allocating an additional $2 billion to the to the Car Allowance Rebate System, more commonly known as Cash for Clunkers. The money will come from the American Reinvestment and Recovery Act (the economic stimulus bill approved in February). The Senate approved the bill by a 60-37 vote on Thursday night. Senator Tom Harkin voted yes, and Senator Chuck Grassley, who criticized the program earlier this week, voted no.

I liked Harkin’s idea to put income limits on this program, but the Senate wanted to get this measure passed before the summer recess. If the Senate had approved a different bill from what cleared the House last week, the funding would have been delayed until September.

The Senate vote went mostly along party lines, but four Democrats joined 33 Republicans in voting no, and seven Republicans joined 53 Democrats in voting yes.

I’m pleased to learn that most consumers who have taken advantage of this program have traded in a “clunker” for cars that get significantly better mileage. (Click here for lists of the most popular vehicles traded in and the most popular purchased with Cash for Clunkers vouchers.) The way Congress wrote the bill, people could have traded in SUVs and trucks for similar vehicles with only minimal improvements in fuel economy.

Huge consumer demand quickly exhausted the $1 billion in federal funds allocated to the “Cash for Clunkers” program that provides $3,500 or $4,500 vouchers to some consumers who trade in old vehicles for newer models. An estimated 250,000 Americans have taken advantage of the program already, prompting the U.S. House to vote on Friday for an additional $2 billion to extend it. All five Iowans in the House voted to fund “Cash for Clunkers” in June, but Representative Steve King (IA-05) voted no on the extra $2 billion.

Although the White House would like to extend this program, Reuters reported that the bill may run into trouble in the Senate:

One member can block a bill in the Senate and there are different interests that could pose a challenge. For instance, Energy Committee Chairman Jeff Bingaman said he opposes the House proposal because it calls for spending unused Energy Department loan guarantees on the program.

Environmental champions in the Senate have urged members to strengthen requirements in the bill for fuel efficiency and pollution control.

Energy analysts played down the impact the program would have on reducing gasoline consumption.

Conservative budget hawks could also draw the line on more help for an industry that has already received tens of billions in federal assistance.

In an ideal world, I would have liked to see “Cash for Clunkers” structured somewhat differently, but there is no question that this program has helped many people and given a slight boost to the economy. Even if the Senate does not approve the additional $2 billion, car dealers’ incentives that copy the “Cash for Clunkers” approach may continue to stimulate new car purchases.

Congressman Bruce Braley (IA-01) was one of the key House sponsors of this bill, and its popularity will probably help him if he ever runs for statewide office. People who bought new cars they otherwise could not have afforded are going to remember that for a long time.

I noticed that Congressman Leonard Boswell (IA-03) is holding a public event to discuss “Cash for Clunkers” on August 4 (Stew Hansen Dodge City Jeep on Hickman in Urbandale, 9 am).

Share any thoughts about this program or stories about people who have benefited from it in this thread.

The Car Allowance Rebate System, also known as “Cash for Clunkers,” goes into effect today. The National Highway Traffic Safety Administration is running the program, which received $1 billion in funding from the supplemental war funding appropriations bill Congress passed in June. Congressman Bruce Braley (IA-01) was among the key House sponsors of this program.

The Quad-City Times praised Braley’s “collaboration and innovative work” on this bill and recapped the guidelines:

$3,500 voucher

– New vehicle must get at least four miles per gallon more than the trade-in.

– A new truck must get at least 2 miles per gallon more.

$4,500 voucher

– The new car gets at least 10 miles per gallon more than the trade-in.

– The new mini-van, small truck or SUV gets at least five miles per gallon more than the trade-in.

– The new full-size pick up or cargo van rated at 15 miles per gallon or more, gets at least two more miles per gallon than a similar trade-in.

Condition of the trade-in:

– Must be driveable

– Have been owned and insured for at least a year.

– Any vehicle built after mid-1984; or a large work truck no newer than 2001.

– Any Category 1 or 2 vehicle (car, minivan, SUV, light pick up) with a combined MPG of 18 or less. This does not apply to category 3 trucks (large pickup trucks and cargo vans).

This website answers some frequently-asked questions about the program in greater detail.

I’ve been hearing radio ads in central Iowa suggesting that some car dealers will match what customers get from the government through the “Cash for Clunkers” program. New car sales have fallen dramatically during this economic recession.

I would have liked to see this bill focus more on energy efficiency, but Braley’s work was well-intentioned. This program should boost sales for automakers while helping a lot of consumers.

The Consumer Assistance to Recycle and Save (CARS) Program (also known as “Cash for Clunkers”) will receive at least $1 billion in funding this year now that Congress has passed the $106 billion Iraq and Afghanistan war supplemental appropriations bill.  

After the jump I provide some legislative history and constructive criticism of Cash for Clunkers, which Representatives Bruce Braley of Iowa and Betty Sutton of Ohio championed as a reward for consumers who trade in inefficient old cars and trucks for new models.

A bill to encourage consumers to purchase new and more fuel-efficient vehicles, co-sponsored by Congressman Bruce Braley (IA-01), passed the U.S. House of Representatives on Tuesday by a wide margin of 298 to 119, with two members voting “present.”

The roll call shows 59 yes votes from Republicans, including Iowa’s Tom Latham (IA-04) and Steve King (IA-05). Leonard Boswell (IA-03) also voted for the bill. Braley and Dave Loebsack (IA-02) were not present for the roll call, but it’s safe to assume that Loebsack would have voted for it, since only a handful of the most conservative House Democrats voted no.

Braley said in a statement,

“The passage of Cash for Clunkers legislation will help boost our economy, save families money, and reduce our dependence on foreign oil,” Braley said.  “Cash for Clunkers is a common-sense idea that can have a big impact on the economy, reducing emissions and saving American jobs by jumpstarting the auto industry.  I hope the passage of this bill today is a sign that this program will start benefiting families and American workers as soon as possible.”

In my opinion, this bill has much more potential to spur new car purchases and save jobs than it does to reduce emissions or our dependence on foreign oil. The increased fuel-efficiency requirements are quite modest (presumably because American car manufacturers have done a poor job of increasing fuel efficiency).

The original draft of the bill set more ambitious mileage requirements, but that changed during negotiations over the Waxman-Markey climate-change bill, to which this measure was attached:

The compromise also waters down the so-called cash-for-clunkers program*, which ostensibly encourages drivers to turn in their gas guzzlers in exchange for a federal subsidy on more fuel efficient models. Yet under the compromise proposal, the new fuel efficiencies are hardly dramatic. For example, drivers trading in trucks between 6,000 and 8,500 pounds would be eligible for a $3,500 voucher for purchasing the same-sized vehicle that’s more efficient by just 1 mile per gallon.

Daniel Becker, director of the Safe Climate Campaign, said the program does much more to help struggling automakers sell large, unpopular models than it does to reduce greenhouse emissions.

“It’s a $4 billion giveaway to move gas guzzling vehicles that nobody wants off the lots,” Becker said.

After the jump I’ve posted the press release from Braley’s office and the information from an accompanying fact sheet on how this bill would work.